Philips Lighting participated in the Guiyang project which is part of the ‘Solar LED Lighting
1000 Villages Program’ − an initiative launched by The Climate Group and the One
Foundation − and provided rural communities in China with solar powered LED street lighting.

Solar LED street lighting provides a high quality, sustainable lighting solution for people in remote
areas who don’t have access to the conventional electricity grid. This solution extends
their day after the sun has set at an affordable cost, increasing the level of safety on roads and
streets and allowing for more economic and social activity. The solution is also valuable in the
“sun-rich” cities in and around the equator that can take advantage of the many hours of
sunlight to supplement the capacity of their conventional electricity grid, addressing growing
concerns about their ability to meet the steep increase in energy demand.

The aim of the 1,000 Villages Project is to explore effective policy measures and financial
mechanism in rural areas. It is a five years project that was kicked off in August 2009.

There are 400 demo villages in China in the first two years and other 600 villages in China, India
and Africa countries in the later three years.

The project aims to bring all stakeholders including governments, technology providers, research
institute and related agencies together. All the results obtained from the project will be shared and
communicated with the public.

The objectives of the project:

To analyze social and economic effect of demonstration including carbon reduction and life
quality improvement

To provide policy recommendation of solar LED lighting technology scale-upping

To recognize and solve the technical obstacles of solar LED lighting

To explore new financial model and scaling up plan

To explore a dialogue mechanism and business model bringing all stake-holders together

The first 100 installations in the Guiyang project were donated and installed in 13 villages in 3
districts around Guiyang city (Guiyang is the capital city of Guizhou Province).

After the first experience with Philips and its solar street lighting solution, Guiyang government
(through the Guiyang Municipal Engineering Administration Department) purchased other 150 sets for a
wetland park around some of those villages.

TCG’s role in the project is to:

Identify demonstration villages and determine project demonstration area on the basis of a number
of criteria

During the day a solar panel converts solar energy into electrical energy that is stored in a
battery. When night falls, the battery discharges, releasing enough power for the LED luminaire to
light the road.

As this lighting solution does not consume any conventional energy, its carbon emissions during
use are zero.

Social Benefits

Lighting up the road and streets in remote areas that do not have access to the conventional
electricity network, literally lights up the lives of the people who live there. Light after sunset
enhances the quality of their lives in many ways: it makes their living environment a safer place; it
gives them the opportunity to continue economic activity after dusk and engage more in (outdoor)
social activities. In short: in increases their sense of well-being.

In addition, the project also includes local training for maintenance and protection

All of the respondents in the research into the Guiyang project indicated that the solar driven
LED road light brings safety to them. Snakes and thieves are the most unsafe aspect at night in Xiao
Xichong.

Villagers believed the newly added visibility from the brighter Philips LED street lighting light
will increase safety at night. They also perceived the effect of solar LED road light as
pleasant and comfortable.

To gain insights into the (social) benefits of the project Philips conducted qualitative research on
site has taken place through interviews with villagers about their experience with the new lighting
solution.

The aim of the research was to learn the key parameters of road lights in rural areas that villagers
care about (frequency of road light usage):

Lights on/off schedules

Satisfaction with the outdoor environment before solar light installation
To validate with potential end users in rural China whether the prototype is suitable or good
enough in terms of its functions

Illuminance perception

Comfort perception

Safety perception

Overall satisfaction

Potential for scaling-up and replication of project

By August 2012, there are 400 demo villages in China where solar driven LED will be applied.

In the last 3 years, another 600 villages in China, India and Africa countries will be targeted.

The highly sustainable, off-grid solutions can not only make a difference to people in remote
areas who don’t have access to the conventional electricity grid, but is also especially
valuable in the “sun-rich” cities in and around the equator. These cities can take
advantage of the many hours of sunlight to supplement the capacity of their conventional electricity
grid, addressing growing concerns about their ability to meet the steep increase in energy
demand.

Philips has therefore also working with selected partners in other countries in the ASEAN region
(Indonesia, Philippines, Thailand, Vietnam) and is looking for partnerships and alliances in Africa
(e.g. in Algeria, Morocco, Nigeria, Ghana).